§3707 Commencement of foreclosure; powers and duties of foreclosure commissioner or substitute

Summary

If the Secretary, as holder of a multifamily mortgage, finds the conditions listed in section 3705 are met, the Secretary can ask the foreclosure commissioner to start the foreclosure. The foreclosure commissioner must begin by serving a notice of default and a notice of the foreclosure sale as described in section 3708. After foreclosure starts, the Secretary may name a substitute foreclosure commissioner up to 48 hours before the sale. The foreclosure keeps going unless the substitute decides continuing the sale would unfairly hurt the borrower; if so, the substitute must cancel or postpone the sale under section 3710(c). When a substitute is named, the substitute must send the written notice to the people listed in section 3708(1), either by mail as in section 3708 (without those mail timing rules) or by any other method the substitute thinks gives timely notice. If the substitute is named less than 48 hours before the sale, the pending foreclosure ends and a new foreclosure process must start with a new notice of default and sale.